Arbitration meaning the term arbitration means a determination of settlement of a dispute by the decision of one or more persons called arbitration or arbitral Tribunal. arbitration is a mean by which party to dispute get the same settled through the intervention of third-person or person but the without recourse to a court of law dispute is settled by the judgment of the arbitrator called an arbitral award or award the party repose confidence in judgement and hence the award is binding on them. This arbitration is considered to be an available affirmative to court litigation which is more consuming and may also adversely affected the reputation of the parties
TYPES OF ARBITRATION ARE:
AD HOC ARBITRATION-An ad hoc arbitration is one which is not administered by an institution and therefore, the parties are required to determine all aspects of the arbitration like the number of arbitrators, manner of their appointment, etc. Provided the parties approach the arbitration in a spirit of cooperation, ad hoc proceedings can be more flexible, cheaper and faster than an administered proceeding. The advantage is that, it is agreed to and arranged by the parties themselves. However, the ground realities show that arbitration in India, particularly ad hoc arbitration, is becoming quite expensive vis-à-vis traditional litigation.
INSTITUTIONAL ARBITRATION An institutional arbitration is one in which a specialized institution with a permanent character intervenes and assumes the functions of aiding and administering the arbitral process, as according to the rules of that institution. It is important to note that these institutions do not arbitrate the dispute, it is the arbitrators who arbitrate, and so the term arbitration institution is inapt and only the rules of the institution apply. Incorporation of book of rules in the “arbitration agreement” is one of the principle advantages of institutional arbitration. Institutional Arbitration, throughout the world, is recognized as the primary mode of resolution of international commercial disputes. It is an arbitration administered by an arbitral institution. Further, in many arbitral institutions such as the International Chamber of Commerce (ICC), before the award is finalized and given, an experienced panel scrutinizes it. As a result, the possibilities of the court setting aside the award is minimal.